Today on TMT we talked about the current Financial issues of Morehouse College. According to the ajc.com,
Morehouse College says it will furlough faculty and staff and make other budget cuts because of a drop in enrollment.
The Atlanta college is teaching 2,360 students — about 125 fewer than projected, Interim Provost Willis Sheftall said Thursday. He attributed the drop to the sluggish economy and changes to a federal loan program that has led to enrollment declines at historically black colleges around the country.
Normally about 8 percent of Morehouse students who pay a deposit to attend don’t enroll, but it doubled to 16 percent this year, in part because of the new loan rules.
“This is a challenge, no question about that,” Sheftall said. “But it is not a crisis.”
Colleges across the country have reported an increase in loan denials after the U.S. Department of Education tightened standards for the Parent Loan for Undergraduate Students. Prospective borrowers can’t have any defaults, foreclosures, bankruptcies, tax liens or wage garnishments within the past five years.
The department has said the tighter regulations protect taxpayer money and prevent people from accumulating debt they can’t afford.
Unlike other federal loans there is no cap for this program and parents can borrow enough money to pay the full cost for their children to attend college. Nearly 1 million families borrowed more than $10 billion last year.
Locally, Clark Atlanta University and Spelman College also say enrollment dropped in part because of the new rules.
Also on TMT we discussed current APS superintendent Erroll Davis and how his job may be on the line……. Click the audio links to hear the conversation….